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November 2015 (1)

KSA Residential Real Estate - Transactions Review (Q3 2015)

Date : 30/11/2015 Author: Marmore MENA

During the past decade, Saudi Arabia has witnessed rapid economic development, attributable to elevated oil production and prices, vigorous private sector activity and strong government spending on infrastructure, health, and education. The nominal GDP of KSA grew from USD 754.6bn in 2013 to USD 761.9bn in 2014, and is projected to reach USD 791.6bn in 2016. High population growth coupled with rise in per capita income has fuelled the demand for residential units in the Kingdom, especially in Riyadh and Jeddah. Government’s focus has shifted towards the housing shortage in the country, as a result of the increasing growth to the population.

Tags:  KSA, Real Estate, Residential, Sector
Ratings:
Current rating:0 (0 ratings)

UAE Asset Management Industry - An Overview

Date : 22/11/2015 Author: Marmore MENA

According to Marmore’s UAE Asset Management report, the UAE asset management industry manages USD 1,264.8mn in assets in about 31 funds as of 21st July, 2015. In terms of products, equity funds lead the pack with 69% share, followed by specialized funds at 20%. Remainder of the assets is spread across money market and fixed income funds. Of the total assets, Islamic funds manage USD 435mn (34.4%) in assets and rest is conventional funds. In terms of the number of funds, there are 23 equity funds, 4 money market funds, 3 specialized funds and 1 fixed income fund.

Tags:  Asset Management, Capital Markets, Equity, Fixed Income, Mutual Funds
Ratings:
Current rating:0 (0 ratings)

GCC Markets - Who created value in the medium/long-term?

Date : 18/11/2015 Author: Marmore MENA

The main goal of an investor or a money manager is to create wealth - be it through capital appreciation strategy, dividend strategy or a capital preservation strategy. Unfortunately over the last 10 year period (2005-October 2015) all but Muscat stock exchange failed to create wealth for investors . That said, looking at the 5 year data, UAE and Qatar posted remarkable returns compared to its peers. Dubai and Abu Dhabi posted 16% and 11% five year CAGR respectively while Qatar posted 9% during the same period the main catalyst for Qatar and the UAE was the inclusion of their respective markets in MSCI EM Index. Assuming investors picked a passive strategy , they would have failed to create wealth over the 10 year period (except Oman) and the 5 year period (barring UAE and Qatar)

Tags:  Capital Markets, GCC Markets
Ratings:
Current rating:0 (0 ratings)

SABIC - Low Oil Prices Pressurizing Top Line

Date : 12/11/2015 Author: Marmore MENA

SABIC was established in 1976 by Royal decree, and is currently ranked amongst the world’s largest petrochemicals manufacturer. According to Marmore’s company report on SABIC, the petrochemical segment contributed over 86% to SABIC’s revenue in 2014. The next big segment in terms of revenue is the minerals/metals segment, generating over 5% of the revenue.  From 2010-14, the revenue from all the four business segments has grown at CAGR of 6%.

Tags:  Company Analysis, Financial Analysis, SABIC, Share performance
Ratings:
Current rating:0 (0 ratings)

Fiscal Measures Worry Markets

Date : 10/11/2015 Author: Marmore MENA

According to Marmore’s recently released Monthly Market Review, MENA markets ended mostly in red during the month of October 2015. Abu Dhabi (-4.0%) suffered the most, followed by Saudi Arabia (-3.8%), Dubai (-2.5%) and Bahrain (-2.0%). Despite the increase in oil prices during October, the lower-than-expected oil prices continue to strain the MENA markets. The regional markets are also responding to instability in the global economy and anticipated monetary tightening in response to low oil prices. KSA is contemplating spending cuts and tax increases to manage its fiscal deficit. Saudi Arabia's weakness is dampening sentiments of the region, even in countries such as the United Arab Emirates & Kuwait, which are relatively well placed to cope with an era of cheap oil. Egypt (3.1%), Oman (2.4%) and Qatar (1.2%) markets gained in October. Kuwait’s price index ended the month of October with a marginal gain of 0.9%. On the contrary the Kuwait weighted index remained stagnant.

Tags:  Capital Markets, Economy, GCC Markets, MENA
Ratings:
Current rating:0 (0 ratings)